Encompass Health’s price target cuts by Stephens analysts

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Encompass Health ($NYSE:EHC) Corporation, formerly HealthSouth Corporation, is a publicly traded company headquartered in Birmingham, Alabama. The company, through its subsidiaries, owns and operates inpatient rehabilitation hospitals and home health and hospice agencies in the United States. The analysts also maintained their “overweight” rating on the company’s stock. The analysts cited several reasons for the price target cut, including reimbursement pressures, declining admissions, and slowing growth in the home health business.

Despite these challenges, the analysts remain bullish on Encompass Health’s long-term prospects. They believe the company’s focus on quality care and its strong relationships with referral sources will help it weather the current headwinds.

Market Price

At the time of writing, news sentiment around Encompass Health is mostly negative. On Wednesday, the stock opened at $55.5 and closed at $54.0, down 2.2% from the previous closing price of $55.2. Analysts believe that Encompass Health is facing challenges that could impact its stock price in the future. These challenges include negative sentiment from investors, as well as potential headwinds in the form of reimbursement pressure and competitive threats.

VI Analysis

Companies with strong fundamentals reflect their long-term potential. The following analysis on ENCOMPASS HEALTH is made simple by VI app. According to VI Star Chart, ENCOMPASS HEALTH has a high health score of 8/10 with regard to its cash flows and debt, indicating that it is capable of paying off debt and funding future operations. ENCOMPASS HEALTH is classified as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. This makes it an attractive investment for investors who are looking for companies with stable growth.

However, ENCOMPASS HEALTH is weak in terms of asset growth, which may be a concern for some investors.

VI Peers

There is fierce competition between Encompass Health Corp and its competitors: Community Health Systems Inc, Pennant Group Inc, Greenbrook TMS Inc. All four companies are leaders in the healthcare industry and are constantly striving to be the best.

– Community Health Systems Inc ($NYSE:CYH)

The company’s market capitalization is 311.19 million as of 2022. The company’s return on equity is -48.01%. The company operates in the healthcare sector and provides healthcare services to patients through its hospitals and related facilities.

– Pennant Group Inc ($NASDAQ:PNTG)

Pennant Group, Inc. provides healthcare services in the United States. The company operates in two segments, Home Health and Hospice, and Senior Living. It offers skilled nursing, physical therapy, occupational therapy, speech therapy, medical social work, and home health aide services to patients in their homes; and hospice services, including nursing care, pain management, social work, chaplain, and bereavement services. The company also provides senior living services, such as independent living, assisted living, and memory care services. As of December 31, 2020, it operated 257 senior living communities with 28,516 units. The company was formerly known as Curo Health Services, Inc. and changed its name to Pennant Group, Inc. in July 2018. Pennant Group, Inc. was founded in 2006 and is headquartered in Carrollton, Texas.

– Greenbrook TMS Inc ($TSX:GTMS)

Greenbrook TMS Inc is a healthcare company that provides treatment for depression and other mental disorders. The company has a market capitalization of 123.09M and a return on equity of -213.16%. The company’s products and services are designed to help patients recover from mental illness and improve their quality of life.

Summary

Encompass Health is a leading provider of rehabilitation and home health services. The company’s stock has been under pressure in recent months due to concerns about its business model and competitive environment. However, Encompass Health remains a well-positioned company with a strong market position and a diversified business model. The company’s stock is attractively valued at current levels and may be worth considering for long-term investors.